Reports to define ANC economy debate

Mogomotsi Magome

TWO reports from Finance Minister Pravin Gordhan and Trade and Industry Minister Rob Davies are to define the debate on the economy set to take place at the ANC national executive committee (NEC) lekgotla in Pretoria over the next two days.

With the rand recently reaching record lows, the economy struggling to yield sufficient growth and job creation almost stagnant, the ANC is desperate to raise investor confidence and find new money to boost state spending.

Fresh from deliberations at the World Economic Forum, Gordhan is expected to table a report that will inform the ANC’s stance on the economy as it prepares for President Jacob Zuma’s State of the Nation address and a challenging election year.

Upon his return to the Finance Ministry last year, Gordhan emphasised how state spending would only increase if revenues were increased, and that spending would be cut if necessary to finance the country’s debt. Gordhan’s report is also expected to touch on how the state intends to deal with underperforming state-owned enterprises, which have become a pain to the Treasury as some require ongoing bailouts.

Speaking on the sidelines of the lekgotla yesterday, ANC secretary-general Gwede Mantashe said the fact they were receiving two reports on the economy showed how seriously the matter would be debated.

However, Mantashe sought to downplay the nature of the challenges facing the economy, saying all developing countries were currently in difficult economic situations.

According to Mantashe, global economic factors were also contributing to the country’s situation, while the economic challenges of the likes of China and the EU were also a factor as they were South Africa’s biggest trading partners.

“But we are going to debate the economy and the approach to the economy, that is why we are receiving two reports. The first one is an input from the Treasury, which will be looking into the fiscal aspects of governance. And we will receive another report from Rob Davies, which will look into the international economic situation, including trade relations,” said Mantashe.

They would also receive a report on the state of local government and research conducted by the party, which is likely to influence how they approach the elections.

The ANC is already facing challenges in some areas where contestations for positions of councillors have resulted in violence. But, according to Mantashe, this is to be expected with all local government elections.

“Selection of candidates is always a tense process.

Actually it is not as intense as in the last elections. We are paying attention to those areas, but the reality is that selection of candidates for council is always a life-and-death issue.

“It is policy of ANC that we will take three candidates to community meetings, it is not an option.”

Cosatu president S’dumo Dlamini said they expected the lekgotla to come up with concrete solutions to the challenges facing the economy.

“It should be able to give solutions and the way forward, but we must remember that these are global challenges,” said Dlamini.